5 Ways to Improve Your Credit Score

Handling your finances the right way can be a real struggle. We have all experienced emergencies or delays with money that have set us back. You may have resorted to taking out loans at times like these, and this may have had a lasting negative impact on your credit score. However, don’t despair, as there are some things you can do to get that credit score up again.

Organize Your Finances

A good way to organize your spending is to make a schedule so that you know when money is coming in and out, and for how much. Set up direct debits in order to avoid missing out on payments, and make sure to note down important transaction dates. This way, you can prepare yourself and make sure you don’t miss a payment in advance. Take a look at why it is important to have a good credit score and start planning your finances better now. 

Spread Your Applications Out

Every time you ask for a loan, this is noted down on your file. Make sure to spread out the applications you make, as too many in a short amount of time will deter companies from lending you money. If you are struggling with being accepted for a loan, consider looking at bad credit payday loans. For more information on how to be accepted with a low credit score, click here.  

Keep Your Credit Limit Low

Depending on what your credit limit is, try to keep your balance at no more than 25 percent. This way, you will be less likely to be turned away from loan companies. If you are no longer using the credit card, it is advisable to keep it open, as it can have a positive impact on your credit utilization ratio. 

Check Your Credit Report Regularly

There may be inaccurate information on your account, therefore you should make a habit of checking your credit reports regularly to stop your credit score decreasing. Also, look out for any suspicious or fraudulent behavior on your account, as someone could take out credit under your name. If this is the case, contact the credit reference agency right away and get your report updated. Find out more information on reporting credit fraud and ways to prevent it here. 

Look at Your Financial Associations 

If you have opened any accounts with other people, this could reflect badly on your score depending on their rating. Similarly, if your financial associate doesn’t pay their bills on time, this can also have a negative impact on your credit score. Close any joint accounts or move them over to an individual account to prevent any further marks being made on your file. You can then contact the credit reference agency and make a ‘notice of dissociation’, to ensure they no longer have any financial connection to you.

With these reasons considered, you can start the process of bettering your credit score. Being aware of your financial situation and making the right decisions that will only improve your situation is vital. Although it can be difficult at times to manage money in the best ways, know your limits and be mindful of the repercussions of your actions. 

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